Magna Carta, and Other AddressesGuthrie, William D. (William Dameron)
History
Magna Carta, and Other Addresses
Guthrie, William D. (William Dameron)
Constitutional law -- United States
forfeiting all right to the protection of the federal government under
any circumstances."
The courts have repeatedly pointed out that the owners of property
devoted to a public use are entitled to a fair and adequate judicial
investigation if they contend that the rates or charges prescribed by a
legislature are unreasonable and confiscatory. This is but recognizing
that the owners of railroads and other property are entitled to a
day in court, just as the humblest person is entitled to his day in
court when his constitutional and vested property rights are invaded
by the government. If the private property of the individual is to
be taken for a public use, it would, of course, be obviously unfair
and unjust to permit the legislature to say conclusively what should
be paid to him, and deny him any adequate opportunity in the courts
to review the legislative fiat. The same principle applies to public
service corporations. They are entitled to appeal to the courts to
pass upon the validity of any legislation which attempts to compel
them to render services at a rate fixed by the legislature if they
contend that such rate is unreasonably low and confiscatory; and,
pending the judicial investigation, they ought not to incur the risk
of accumulating and ruinous penalties. The New York Public Service
Commissions Act of last year recognizes this in principle. But, instead
of granting a fair hearing or providing for any judicial proceeding
in which the reasonableness of the statutory rates may be promptly
investigated, the constant effort seems to be to render resort to the
courts so dangerous that property owners will abandon their right
to a day in court rather than take the risks involved in allowing
penalties to accrue and accumulate, which might subject their property
to confiscation. Thus, in the recent New York gas statute, declared
unconstitutional by the United States circuit court, no judicial
investigation was afforded and the penalties imposed were at the
rate of $1,000 for each overcharge or violation of the law. As the
Consolidated Gas Company alone had upwards of 390,000 customers, an
overcharge on only one month's bills, pending an attempt to test the
law in good faith, would involve the fabulous total of $390,000,000 in
penalties, or nearly five times the value of the whole property of the
company. In fact, if the New York statute, at least in this respect,
is not nullified by the Supreme Court on the pending appeal,[46] the
Consolidated Gas Company may be absolutely ruined for having asserted
its legal right to a fair judicial investigation before being compelled
to accept what it insisted and what the court has so far held was a
confiscatory and unreasonable rate; that is to say, for daring to
insist upon a fair judicial hearing before being condemned. The Kansas
statute regulating stockyards, which was declared unconstitutional by
the Supreme Court,[47] imposed penalties which might have aggregated
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